Entrepreneurs’ relief, EIS & SEIS schemes

There are many incentives and reliefs within the UK tax legislation. In our experience it is apparent that the availability of these reliefs is not widely known by taxpayers. In many cases individuals and businesses may be losing out on available reliefs which could be secured with planning and the right professional help.

Entrepreneurs and Investors Services

If the planning involving such reliefs is implemented correctly and in a timely manner substantial tax savings and deferrals can be secured with little risk of challenge from H M Revenue & Customs.

The SEIS relief is like EIS. However, only smaller companies which have been in existence for less than 2 years can issue shares to investors under the SEIS rules.

The main features of the relief are:

Relief is 50% of the investment made

Most of the issues are a mirror of the EIS provisions – the main distinction for SEIS relief is the size and length of operation requirements

As for EIS we have advised many companies and individuals on SEIS relief.

Entrepreneurs’ Relief – individuals

On the disposal of certain specified business assets, a reduced rate of CGT is available for those individuals who meet the necessary conditions.

The main features of the relief are:

The rate of CGT is 10% rather than 20%

Available on lifetime capital gains of up to £10 million

The nature of the asset being sold is important – the relief is only available for disposals of interests in trading businesses and not investment businesses or property holdings

There are a host of conditions which need to be met by the individual making the disposal and the business

We have advised many individuals about their entitlement to Entrepreneurs’ Relief. We have worked with many business owners to help them to structure their businesses so that the potential for Entrepreneurs’ Relief is maximised.

We have assisted clients with pre-sale planning and business restructuring to maximise the relief.

Please see the Friend Partnership Guide to Entrepreneurs and investors for further detail.

Expert Taxation Services Birmingham

If you would like to get in touch and find out more about our entrepreneurs and investors services please contact us here.